On what must the Deck Medic Franchisee Directed Local Marketing funds be spent?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
| Franchisee Directed Local Marketing (Note 5) | During the first year of operations, in accordance with your local advertising plan, and 5% of Gross Sales thereafter | As incurred | Must be spent by you on pre-approved marketing within your operating territory. |
|---|---|---|---|
| Local and Regional Advertising Cooperatives (Note 6) | Established by cooperative members, but not exceeding 5% of Gross Sales | As established by cooperative members | If we authorize an Advertising Cooperative, fees that you pay to the cooperative will count to the satisfaction of your Franchisee Directed Local Marketing Requirements. |
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, the Franchisee Directed Local Marketing fees must be spent on pre-approved marketing within the franchisee's operating territory. During the first year of operation, Deck Medic will assist the franchisee in developing a plan for advertising, promotions, and public relations within their territory, and the franchisee is required to make expenditures according to this plan.
Beginning in the second year, and continuing thereafter, the franchisee must spend 5% of the previous year's Gross Sales on local marketing for their Deck Medic business. These marketing efforts must adhere to Deck Medic's standards and specifications.
If Deck Medic authorizes a local or regional advertising cooperative, fees paid to the cooperative can count toward fulfilling the Franchisee Directed Local Marketing requirements. The amount contributed to such a cooperative cannot exceed 5% of the franchisee's monthly Gross Sales. This provides some flexibility in how the local marketing requirement is met, allowing franchisees to participate in cooperative advertising efforts if available and approved.